NRG Energy is canceling plans to build an 800 MW coal-fired unit at its Limestone power plant in Texas.
NRG voided the air permit for the Limestone 3 project, citing an abundant supply of natural gas. The permit was set to expire in December.
The company said in 2006 it planned to invest $1.2 billion to build the Limestone 3 unit. NRG reached an agreement in 2008 with environmental groups to sequester carbon emissions from the plant and to not build another coal-fueled plant in the state unless it used integrated gasification combined-cycle (IGCC) technology. In exchange, the groups dropped their opposition to the air permit, which was granted in 2009.
The Limestone Station generates more than 1,700 MW of baseload generating capacity.